1. Developing Global Managers
Chapter Three

2. After reading the material in this chapter, you should be able to:
LO3.1 Describe a global mind-set, and explain how to build its three-component forms of capital. LO3.2 Identify and describe the nine cultural dimensions from the GLOBE project. LO3.3 Describe the differences between individualistic cultures and collectivist cultures.
LO3.1 Describe a global mind-set, and explain how to build its three-component forms of capital.
LO3.2 Identify and describe the nine cultural dimensions from the GLOBE project.
LO3.3 Describe the differences between individualistic cultures and collectivist cultures.

3. After reading the material in this chapter, you should be able to:
LO3.4 Demonstrate your knowledge of the distinctions between high-context versus low-context cultures and monochronic versus polychronic cultures. LO3.5 Explain what the GLOBE project has taught us about leadership. LO3.6 Identify an OB trouble spot for each stage of the foreign assignment cycle.
LO3.4 Demonstrate your knowledge of the distinctions between high-context versus
low-context cultures and monochronic versus polychronic cultures.
LO3.5 Explain what the GLOBE project has taught us about leadership.
LO3.6 Identify an OB trouble spot for each stage of the foreign assignment cycle.

4. Developing a Global Mindset
Intellectual capital
Psychological capital
Social capital
1. Intellectual capital —Knowledge of international business and ability to learn,
characterized by global business savvy, cognitive complexity (ability to analyze
and connect multiple elements), and cosmopolitan outlook
2. Psychological capital —Openness to other cultures and willingness to change,
characterized by passion for diversity, thirst for adventure, and self-assurance
3. Social capital —Ability to form connections and bring people together,
characterized by intercultural empathy, interpersonal impact, and diplomacy

5. A Model of Societal and Organizational Cultures
Societal culture
involves shared values, norms, identities, and interpretations that result from common experiences of members of collectives that are transmitted over time.
Societal culture
involves shared values, norms, identities, and interpretations that result from common experiences of members of collectives that are transmitted over time.

6. Cultural Influences on Organizational Behavior
As illustrated in Figure 3–1 ,
both organizational and societal cultures influence organizational behavior. Employees
bring their societal culture to work with them in the form of customs and language.
Organizational culture, a by-product of societal culture, in turn affects individual differences,
such as values, ethics, attitudes, assumptions, and expectations.

7. Merging Societal and Organizational Culture
Employees bring their societal culture to work with them in the form of customs and language
Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations
Employees bring their societal culture to work with them in the form of customs and language
Organizational culture affects an individual’s values, ethics, attitudes, assumptions, and expectations

8. Ethnocentrism Ethnocentrism
belief that one’s native country, culture, language, and behavior are superior to all others.
Ethnocentrism —the belief that one’s native country, culture, language, and modes
of behavior are superior to all others—has its roots in the dawn of civilization.

9. Research Insight and Dealing with Ethnocentrism
A survey of companies in Europe, Japan and the U.S. found ethnocentric staffing and human resource policies to be associated with increased personnel problems.
Those problems included recruiting difficulties, high turnover rates, and lawsuits over personnel policies.
Research suggests
ethnocentrism is bad for business. A survey of 918 companies with home offices in the
United States (272 companies), Japan (309), and Europe (337) found ethnocentric
staffing and human resource policies to be associated with increased personnel problems.
Those problems included recruiting difficulties, high turnover rates, and lawsuits
over personnel policies. Among the three regional samples, Japanese companies had
the most ethnocentric human resource practices and the most international human
resource problems.

10. Question?
Patricia has lived in the US her entire life. She believes that the US is the greatest country in the world. Her belief is an example of _____. 
Societal norm
Cultural paradox
Ethnocentrism
Collectivism
The correct answer is “C” – ethnocentrism. See slide 3-8.
AACSB: Reflective thinking, Analytical skills Difficulty: Hard Learning Objective: 1 Type: Knowledge, Understanding, Application

11. Becoming Cross-Culturally Competent
Cultural intelligence
ability to interpret ambiguous cross-cultural situations correctly
Cultural intelligence
ability to interpret ambiguous cross-cultural situations correctly

12. Project GLOBE
GLOBE (Global Leadership and Organizational Behavior Effectiveness)
attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes
GLOBE (Global Leadership and Organizational Behavior Effectiveness)
attempt to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes

13. Nine Basic Cultural Dimensions from the GLOBE Project
Power distance
How much unequal distribution of power should there be in organizations and society?
Uncertainty-avoidance
How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?
Power distance
How much unequal distribution of power should there be in organizations and society?
Uncertainty-avoidance
How much should people rely on social norms and rules to avoid uncertainty and limit unpredictability?

14. Nine Basic Cultural Dimensions from the GLOBE Project
Institutional collectivism
How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals?
In-group collectivism
How much pride and loyalty should individuals have for their family or organization?
Institutional collectivism
How much should leaders encourage and reward loyalty to the social unit, as opposed to the pursuit of individual goals?
In-group collectivism
How much pride and loyalty should individuals have for their family or organization?

15. Nine Basic Cultural Dimensions from the GLOBE Project
Gender egalitarianism
How much effort should be put into minimizing gender discrimination and role inequalities?
Assertiveness
How confrontational and dominant should individuals be in social relationships?
Future orientation
How much should people delay gratification by planning and saving for the future?
Gender egalitarianism
How much effort should be put into minimizing gender discrimination and role inequalities?
Assertiveness
How confrontational and dominant should individuals be in social relationships?
Future orientation
How much should people delay gratification by planning and saving for the future?

16. Nine Basic Cultural Dimensions from the GLOBE Project
Performance orientation
How much should individuals be rewarded for improvement and excellence?
Humane orientation
How much should society encourage and reward people for being kind, fair, friendly, and generous?
Performance orientation
How much should individuals be rewarded for improvement and excellence?
Humane orientation
How much should society encourage and reward people for being kind, fair, friendly, and generous?

17. GLOBE and the Hofstede Study
Power distance
How much inequality does someone expect in social situations?
Individualism-collectivism
How loosely or closely is the person socially bonded?
Power distance
How much inequality does someone expect in social situations?
Individualism-collectivism
How loosely or closely is the person socially bonded?

18. GLOBE and the Hofstede Study
Masculinity-femininity
Does the person embrace stereotypically competitive, performance-oriented masculine traits or nurturing, relationship-oriented feminine traits?
Uncertainty- avoidance
How strongly does the person desire highly structured situations?
Masculinity-femininity
Does the person embrace stereotypically competitive, performance-oriented masculine traits or nurturing, relationship-oriented feminine traits?
Uncertainty- avoidance
How strongly does the person desire highly structured situations?

19. Countries Ranking Highest and Lowest on the GLOBE Cultural Dimensions
How do different countries
score on the GLOBE cultural dimensions? Data from 18,000 managers yielded the
profiles in Table 3–1 . A quick overview shows a great deal of cultural diversity around the world

20. Country Profiles and Practical Implications
Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.
Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.

21. Question?
Rebecca has always focused on delaying gratification and saving money for the well-being and education of her children and her own retirement. According to dimensions from the GLOBE project, Rebecca's behavior reflects:
Future orientation
In-group collectivism
Masculinity-femininity
Assertiveness
The correct answer is “A”
AACSB:  Multicultural-diversity Bloom's Taxonomy:  Application
Difficulty:  Hard Page:  67-68

22. Individualism versus Collectivism
Individualistic culture - characterized as “I” and “me” cultures, give priority to individual freedom and choice
Collectivist culture – oppositely called “we” and “us” cultures, rank shared goals higher than individual desires and goals
Individualistic culture - characterized as “I” and “me” cultures, give priority to individual freedom and choice
Collectivist culture – oppositely called “we” and “us” cultures, rank shared goals higher than individual desires and goals

23. High-context cultures and Low-context cultures
High-context cultures – rely heavily on situational cues for meaning when perceiving and communicating with others
Low-context cultures – written and spoken words carry the burden of shared meanings
High-context cultures – rely heavily on situational cues for meaning when perceiving and communicating with others
Low-context cultures – written and spoken words carry the burden of shared meanings

24. Question?
Michelle is torn between her desire to go on vacation and her organization's desire to have her at work. She decides to take her vacation. Michelle is probably from a(n) _____ culture. 
Organizational
Low-context
High-context
Individualistic
The correct answer is “D” – Individualistic. See slide 3-22.
AACSB: Reflective thinking, Analytical skills, Multicultural and diversity understanding Difficulty: Hard Learning Objective: 3 Type: Knowledge, Understanding, Application

25. Cultural Perceptions of Time
Monochronic time
revealed in the ordered, precise, schedule-driven use of public time that typifies and even caricatures efficient Northern Europeans and North Americans
Polychronic time
seen in the multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin American, and especially Arab cultures.
Monochronic time
revealed in the ordered, precise, schedule-driven use of public time that typifies and even caricatures efficient Northern Europeans and North Americans
Polychronic time
seen in the multiple and cyclical activities and concurrent involvement with different people in Mediterranean, Latin American, and especially Arab cultures.

26. Leadership Attributes Universally Liked and Disliked
Table 3-2
In phase 2 of the GLOBE Project, researchers set out to discover which, if any, attributes
of leadership were universally liked or disliked. They surveyed 17,000 middle
managers working for 951 organizations across 62 countries. Their results, summarized
in Table 3–2 , have important implications for present and future global managers.

27. Question?
Manuel is manager of a work crew. He keeps to himself and prefers not to interact with his employees. This is an example of which negative leader attribute.
Asocial
Ruthless
Eccentric
Loner
The correct answer is “D” – loner. See previous slide.

28. Preparing for a Foreign Assignment
Expatriate
refers to anyone living and/or working outside their home country
Expatriate
refers to anyone living and/or working outside their home country

29. Common Types of Expatriate Performance Failures
Early return from assignment
Delayed productivity or project start time
Disruption of relationship between expatriate and host nationals
Damage to employer’s image
Lost opportunities
Problematic repatriation
Early return from assignment
Delayed productivity or project start time
Disruption of relationship between expatriate and host nationals
Damage to employer’s image
Lost opportunities
Problematic repatriation

30. The Foreign Assignment Cycle
As illustrated in Figure 3–2 , the first and last stages of the cycle occur at
home. The middle two stages occur in the foreign or host country. Each stage hides an
OB-related trouble spot that needs to be anticipated and neutralized. Otherwise, the
bill for another failed foreign assignment will grow.
Figure 3-2

31. Avoiding Unrealistic Expectations
Realistic job previews are a must for future expatriates.
Cross-cultural training
any activities aimed at enhancing the cultural awareness of employees to enable them to work more effectively with people from different cultural backgrounds.
Realistic job previews are a must for future expatriates.
Cross-cultural training
any activities aimed at enhancing the cultural awareness of employees to enable them to work more effectively with people from different cultural backgrounds.

32. Key Cross-Cultural Competencies
SOURCE: Excerpted from Y Yamazaki and D C Kayes, “An Experiential Approach to
Cross-Cultural Learning: A Review and Integration of Competencies for Successful Expatriate
Adaptation,” Academy of Management Learning and Education, December 2004, Table 2, p 372.

33. Avoiding Culture Shock
anxiety and doubt caused by an overload of new expectations and cues
Best defense is comprehensive cross-cultural training, including intensive language study
Culture shock
anxiety and doubt caused by an overload of new expectations and cues
Best defense is comprehensive cross-cultural training, including intensive language study

34. Question?
Danielle is struggling with the anxiety of driving on the left-hand side of the road at her new job assignment in the U.K. This is called ___________.
Mentoring
Collective culture
Culture shock
Societal adjustment
The correct answer is “C” – culture shock. See previous slide.

35. Support during the Foreign Assignment
Host-country sponsors
assigned to individual managers or families
Serve as “cultural seeing-eye dogs”
Host-country sponsors
assigned to individual managers or families
Serve as “cultural seeing-eye dogs”

36. Building a Support Network During a Foreign Assignment
Informational support
includes knowledge to assist expatriates’ functioning and problem solving in the host country
Emotional support
helps expatriates feel better about themselves and their situation when adjustment is difficult or overwhelming
Informational support
includes knowledge to assist expatriates’ functioning and problem solving in the host country
Emotional support
helps expatriates feel better about themselves and their situation when adjustment is difficult or overwhelming

37. Building a Support Network During a Foreign Assignment
Stage 1: First, if not also foremost, expatriates need to be motivated to seek support. Stage 2: Next, potential sources of support need to be identified and approached. Stage 3: And once identified, the support provider’s willingness and ability to support needs to be determined and support needs to be utilized. Stage 4: Support needs to be utilized. Stage 5: Include support provider in the expatriate’s network—if the support was helpful.
Stage 1: First, if not also foremost, expatriates need to be motivated to seek
support.
Stage 2: Next, potential sources of support need to be identified and approached.
Stage 3: And once identified, the support provider’s willingness and ability to support
needs to be determined and support needs to be utilized.
Stage 4: Support needs to be utilized.
Stage 5: Include support provider in the expatriate’s network—if the support was
helpful.

38. Successful International Assignments
Be sure that repatriation is an explicit part of your international assignment plan.
Identify, establish, and maintain communications with sources of ongoing support in your home country.
Confirm that senior management openly and genuinely values international expertise.
1. Be sure that repatriation is an explicit part of your international assignment
plan. A major reason for repatriate dissatisfaction and turnover is upon their
return no positions were available for them. Their new skills and experiences
were under appreciated and not utilized.
2. Identify, establish, and maintain communications with sources of ongoing support
in your home country. Many repatriates complain that they became disconnected
and out of the loop while away. They felt that their opportunities were
limited once they returned because nobody was looking out for them while they
were away (e.g., manager, mentor, or career coach).
3. Confirm that senior management openly and genuinely values international
expertise. For instance, be certain that international expertise is considered and
matters when identifying candidates for future opportunities. 58

39. Video Case: Cirque du Soleil
Why is Cirque du Soleil successful throughout the world? Why does the product transcend culture differences between countries?
How do the cultural influences influence organizational behavior at Cirque du Soleil?
Why is it important for Cirque du Soleil to be a good corporate citizen? How does ethnocentrism relate to fulfilling this role?
One reason Cirque du Soleil is successful throughout the world is because its creators respect the cultures and traditions it encounters. Cirque du Soleil transcends cultural differences between countries because the company’s diversity assures that every show reflects many different cultural influences. It’s product is a blend of global influences.
The societal culture exerts a large impact on the organizational culture of Cirque du Soleil. Employees bring their respective societal cultures to the organization. The artists at Cirque du Soleil represent diverse cultures who speak 25 different languages.
Cirque du Soleil serves a global consumer base and recruits its artists and performers from across the globe. Any evidence of ethnocentrism diminishes the effectiveness in both these areas.

40. Video Case: Disney Imagineering
In what ways does Disney Imagineering truly live up to the title of a global company? Why are their parks and stories so universally accepted across cultures?
For its remote locations, does Disney consider local cultural tastes too much? Should they “stick to their guns” more?
What benefit does paying attention to local culture provide?
Disney has not only expanded globally, but also acclimates their location to the local culture. Their parks, movies and stories all transcend cultural boundaries because they speak to the universal “human experience”.
Disney has to consider local culture in order to survive. If they ignore the local culture, they will be rejected and this will create countless issues - which would include having an extremely difficult time hiring workers to staff the park as well as being a good corporate citizen.
The benefits to acclimating to local culture are also countless. These include availability of labor, relationships with local vendor, other businesses assisting in providing a support structure (i.e. accommodations, etc.) and help from local government (i.e. infrastructure, etc.).